by Marc Smith
Do you have a pension buyout option? Here’s another good reason to consider taking it. One of the largest multi-employer pension funds is running out of money and requesting sharp benefit cuts for retired employees. This is due to several factors: poor investment returns, increasing life expectancy and aggressive promises to employees.
Pensions sound great in theory and I understand the lure of guaranteed income for life. However, cases like this should make you question the definition of the word ‘guaranteed.’ This story is a classic canary in the coal mine – there will be many more like it in the coming years. If you have a pension and have a buyout option, I encourage you to run the numbers and see if it makes sense for you. If you’d like to get together and discuss your specific situation, you can reach me at 717.601.0651 or firstname.lastname@example.org.